Delek sells control of US insurer for $121m

Delek sold 55% of Republic Companies Group to an investor group.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has sold the 55% controlling interest in US insurer Republic Companies Group Inc. to an investor group for $121 million, at a company value of $220 million.

The buyer has a two-year option to acquire the remaining 45% stake for $99 million, plus 6.5% annual interest, pursuant to a mechanism set out in the agreement.

Half the proceeds will be in cash, and the other half will be via a seller's loan by Delek Finance US Inc. (through which Delek Group controls Republic Group), payable in three years at 6.5% annual interest. The shares in Republic Group will be collateral against the loan. The sale is subject to regulatory approval of the buyer.

Published by Globes [online], Israel business news - - on April 16, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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